LUCO AUDITING PLC Chartered Accountants (S.A.) egistered Auditors ASBESTOS ELIEF TUST ANNUAL FINANCIAL STATEMENTS FO THE YEA ENDED 29 FEBUAY 2016
General Information Country of incorporation and domicile Type of trust Trustees Business address South Africa To provide compensation to claimants that qualify, as defined in the trust deed, in respect of asbestos-related diseases as fully, fairly and effectively as its means allow P. Van Zyl P. Camay J. Doidge J. De Bruyn Dr. I.P. Jood-Molaolwe M. Silinda C. Molusi Eton Building Sherborne Square 5 Sherborne oad Parktown 2193 Postal address P.O. Box 86 Parklands 2121 Bankers Auditors Nedbank Limited LUCO AUDITING PLC Chartered Accountants (S.A.) egistered Auditors Trust registration number IT 1734/2003 Tax reference number 1534/291/14/9 Level of assurance Preparer These annual financial statements have been audited in compliance with the applicable requirements of the Trust Deed. The annual financial statements were internally compiled by: Lucro Auditing PLC Published 16 August 2016 1
Index The reports and statements set out below comprise the annual financial statements presented to the Trustees: Index Page Trustees' esponsibilities and Approval 3 Independent Auditors' eport 4 Trustees' eport 5-7 Statement of Financial Position 8 Statement of Comprehensive Income 9 Statement of Changes in Equity 10 Statement of Cash Flows 11 Accounting Policies 12-14 Notes to the Annual Financial Statements 15-20 The following supplementary information does not form part of the annual financial statements and is unaudited: Detailed Income Statement 21 2
Trustees' esponsibilities and Approval The Trustees are required to maintain adequate accounting records and are responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is their responsibility to ensure that the annual financial statements fairly present the state of affairs of the Trust as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with the International Financial eporting Standard for Small and Medium-sized Entities. The external auditors are engaged to express an independent opinion on the annual financial statements. The annual financial statements are prepared in accordance with the International Financial eporting Standard for Small and Mediumsized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgments and estimates. The Trustees acknowledge that they are ultimately responsible for the system of internal financial control established by the Trust and place considerable importance on maintaining a strong control environment. To enable the Trustees to meet these responsibilities, the board of Trustees sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Trust and all employees are required to maintain the highest ethical standards in ensuring the Trust s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Trust is on identifying, assessing, managing and monitoring all known forms of risk across the Trust. While operating risk cannot be fully eliminated, the Trust endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The Trustees are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The Trustees have reviewed the Trust s cash flow forecast for the year to 28 February 2017 and, in the light of this review and the current financial position, they are satisfied that the Trust has or has access to adequate resources to continue in operational existence for the foreseeable future. The external auditors are responsible for independently auditing and reporting on the Trust's annual financial statements. The annual financial statements have been examined by the Trust's external auditors and their report is presented on page 4. The annual financial statements set out on pages 5 to 21, which have been prepared on the going concern basis, were approved by the board of Trustees on 16 August 2016 and were signed on its behalf by: P. Camay P. Van Zyl 3
Independent Auditors' eport To the Trustees of Asbestos elief Trust We have audited the annual financial statements of Asbestos elief Trust, as set out on pages 8 to 20, which comprise the statement of financial position as at 29 February 2016, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information. Trustees' esponsibility for the Annual Financial Statements The Trust s Trustees are responsible for the preparation and fair presentation of these annual financial statements in accordance with the International Financial eporting Standard for Small and Medium-sized Entities and requirements of the Trust Deed, and for such internal control as the trustees determine is necessary to enable the preparation of annual financial statements that are free from material misstatements, whether due to fraud or error. Auditors' esponsibility Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Asbestos elief Trust as at 29 February 2016, and its financial performance and cash flows for the year then ended in accordance with the International Financial eporting Standard for Small and Medium-sized Entities, and the requirements of the Trust Deed. L.J. Wood LUCO AUDITING PLC Chartered Accountants (S.A.) egistered Auditors Fourways 16 August 2016 4
Trustees' eport The Trustees have pleasure in submitting their report on the annual financial statements of Asbestos elief Trust for the year ended 29 February 2016. 1. Nature of business Asbestos elief Trust was formed to provide compensation to claimants that qualify, as defined in the Trust Deed, in respect of asbestos-related diseases as fully and effectively as its means allow and operates in South Africa. There have been no material changes to the nature of the Trust's business from the prior year. 2. eview of financial results and activities The annual financial statements have been prepared in accordance with International Financial eporting Standard for Small and Medium-sized Entities. The accounting policies have been applied consistently compared to the prior year. Full details of the financial position, results of operations and cash flows of the Trust are set out in these annual financial statements. 3. Beneficiaries The beneficiaries of the Trust during the accounting year and up to the date of this report are as follows: Qualifying claimants for the life of the Trust To the extent that upon the expiry of the life of the Trust, the assets left in the Trust may be donated to any charitable organisation having as one of its principal objectives the promotion of welfare of persons or communities detrimentally affected by asbestos mining. All Payment made to beneficiaries are limited to the funds available for distribution as per the settlement accounts. 4. Distributions to beneficiaries During the year under review, claims to the value of 28 747 366 were approved of which 7 387 636 still has to be paid out subsequent to year end. 5. Trustees The Trustees in office at the date of this report are as follows: Trustees P. Van Zyl P. Camay J. Doidge J. De Bruyn Dr. I.P. Jood-Molaolwe M. Silinda C. Molusi There have been no changes to the trustees for the period under review. 6. Property, plant and equipment There was no change in the nature of the property, plant and equipment of the Trust or in the policy regarding their use. At 29 February 2016 the Trust's investment in property, plant and equipment amounted to 4 303 395 (2015:4 119 719), of which 400 225 (2015: 16 259) was added in the current year through additions. 5
Trustees' eport 7. Events after the reporting period The Trustees are not aware of any material event which occurred after the reporting date and up to the date of this report. 8. Going concern The Trustees believe that the Trust has adequate financial resources to continue in operation for the foreseeable future and accordingly the annual financial statements have been prepared on a going concern basis. The Trustees have satisfied themselves that the Trust is in a sound financial position and are not aware of any new material changes that may adversely impact the Trust. The Trustees are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may affect the Trust. 9. Auditors LUCO AUDITING PLC continued in office as auditors for the Trust for 2016. They will continue in office for the 2017 financial year. 10. Duration and dissolution of the Trust The Trust shall endure for 25 years from date of registration (2003), which can be extended or reduced by 5 years in the discretion of the Trustees. 11. Date of authorisation for issue of financial statements The annual financial statements have been authorised for issue by the Trustees on 18 May 2016. No authority was given to anyone to amend the financial statements after the date of issue. 12. Founders The founders of the Trust are Gencor Limited, The Griqualand Exploration and Finance Company Limited and Msauli Asbes Beperk. The funds provided by the founders are detailed in note 3 of the financial statements. The founders, in terms of a settlement agreement, have agreed to settle fully and finally and without any admission of liability, all disputes arising out of, or in connection with exposure to asbestos dust and the contraction of asbestos-related diseases by any occupational, environmental or dependant claimant, as defined in the Trust deed at any of the founders operations. In terms of this settlement agreement funds were paid to the Trust for compensation of the qualifying claimants. These funds will be used to settle the obligation to the beneficiaries of the Trust. Accordingly the Trust s assets represent an obligation to the beneficiaries of the Trust. The income generated by the Trust from these assets represents income of the Trust. The Trust will apply this income to meet the expenses of the Trust. Any income, in excess of the expenses of the Trust will be for the benefit of the beneficiaries.the Gencor settlement account is specifically utilised by the Trustees to make awards to the following beneficiaries: - All persons who have contracted an asbestos related disease with a lung function impairment who had occupational exposure to asbestos dust at the qualifying operations solely during the period 1965 to 1988 inclusive. - All persons who have contracted an asbestos related disease with a lung function impairment who had environmental (nonoccupational exposure) to asbestos dust in the vicinity of any of the qualifying operations and who have no prior history of any occupational exposure to asbestos dust at any time. - All persons who have contracted mesothelioma or asbestos related lung cancer who had occupational exposure to asbestos dust at any time of the qualifying operations partly during 1965 to 1988 and partly outside this period. - The dependants of persons who have died and a cause of death is mesothelioma or asbestos related lung cancer in circumstances where it is satisfied that the deceased had asbestos dust exposure at a qualifying operation or, as the case may be, environmental exposure to asbestos dust in the vicinity of any of the qualifying operations and who had no history of any occupational exposure to asbestos dust at any time. 6
Trustees' eport 13. Meeting attendance The Trustees attendance at quarterly meetings for the 2016 financial year are as follows: Trustee: 19 May 2015 18 August 2015 17 November 2015 16 February 2016 P. Van Zyl Present Present Present Present P. Camay Present Present Present Present J. Doidge Present Present Present Present J. De Bruyn Apology Present Present Present Dr. I.P. Jood-Molaolwe Present Present Present Present M. Silinda Present Present Present Present C. Molusi Absent Present Apology Apology 7
Statement of Financial Position as at 29 February 2016 2016 2015 Note(s) Assets Non-Current Assets Property, plant and equipment 2 4 303 395 4 119 719 Other financial assets 4 277 825 768 291 472 848 282 129 163 295 592 567 Current Assets Trade and other receivables 5 163 354 145 211 Cash and cash equivalents 6 13 719 329 13 547 051 13 882 683 13 692 262 Total Assets 296 011 846 309 284 829 Equity and Liabilities Equity Trust capital 7 300 300 Liabilities Non-Current Liabilities Funds available for distribution 3 287 975 398 296 478 132 Current Liabilities Trade and other payables 9 7 945 622 12 705 302 Provisions 8 90 526 101 095 8 036 148 12 806 397 Total Liabilities 296 011 546 309 284 529 Total Equity and Liabilities 296 011 846 309 284 829 8
Statement of Comprehensive Income 2016 2015 Note(s) evenue 10 418 600 325 899 Other income 11 (4 920 159) 705 748 Operating expenses (7 288 047) (7 085 233) Operating deficit 12 (11 789 606) (6 053 586) Investment revenue 13 17 138 176 16 247 113 Social project expenses (482 447) (656 335) Surplus for the year 4 866 123 9 537 192 9
Statement of Changes in Equity Trust capital Accumulated Total equity surplus Balance at 01 March 2014 300-300 Surplus for the year - 9 537 192 9 537 192 Transfer of surplus to Trust capital - (9 537 192) (9 537 192) Balance at 01 March 2015 300-300 Surplus for the year - 4 866 123 4 866 123 Transfer of surplus to Trust capital - (4 866 123) (4 866 123) Balance at 29 February 2016 300-300 Note 7 10
Statement of Cash Flows 2016 2015 Note(s) Cash flows from operating activities Cash used in operations 17 (11 534 937) (1 041 372) Interest income (1 426 344) (1 481 651) Net cash from operating activities (12 961 281) (2 523 023) Cash flows from investing activities Purchase of property, plant and equipment 2 (400 225) (16 259) Sale of property, plant and equipment 2 49 437 - Net movement in financial assets 8 288 121 2 801 974 Dividends received 3 220 159 2 178 670 Interest Income 15 344 361 15 550 094 Net cash from investing activities 26 501 853 20 514 479 Cash flows from financing activities Net movement in funds available for distribution (8 502 172) (9 137 798) Transfer of surplus to funds available for distribution (4 866 123) (9 537 192) Net cash from financing activities (13 368 295) (18 674 990) Total cash movement for the year 172 277 (683 534) Cash at the beginning of the year 13 547 051 14 230 585 Total cash at end of the year 6 13 719 328 13 547 051 11
Accounting Policies 1. Presentation of Annual Financial Statements The annual financial statements have been prepared in accordance with the International Financial eporting Standard for Small and Medium-sized Entities. The annual financial statements have been prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They are presented in South African ands. These accounting policies are consistent with the previous period. 1.1 Significant judgements and sources of estimation uncertainty In preparing the annual financial statements, management is required to make judgements, estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results in the future could differ from these estimates which may be material to the annual financial statements. 1.2 Property, plant and equipment Property, plant and equipment are tangible items that: are held for use in the production or supply of goods or services, for rental to others or for administrative purposes; and are expected to be used during more than one period. Property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses. Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over the useful life of the property, plant and equipment, which is as follows: Item Buildings Furniture and fixtures Office equipment IT equipment Computer software Average useful life 20 Years 10 Years 5 Years 3 Years 2 Years The residual value, depreciation method and useful life of each asset are reviewed at each annual reporting period if there are indicators present that there has been a significant change from the previous estimate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss in the period. 1.3 Financial instruments Initial measurement Financial instruments are initially measured at the transaction price. This includes transaction costs, except for financial instruments which are measured at fair value through surplus or deficit. Financial instruments at amortised cost Debt instruments, as defined in the standard, are subsequently measured at amortised cost using the effective interest method. Debt instruments which are classified as current assets or current liabilities are measured at the undiscounted amount of the cash expected to be received or paid, unless the arrangement effectively constitutes a financing transaction. At the end of each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any objective evidence of impairment. If so, an impairment loss is recognised 12
Accounting Policies 1.3 Financial instruments (continued) Financial instruments at cost Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably are measured at cost less impairment. This includes equity instruments held in unlisted investments. Financial instruments at fair value All other financial instruments are measured at fair value through profit and loss. 1.4 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. Operating leases lessee Operating lease payments are recognised as an expense on a straight-line basis over the lease term except in cases where another systematic basis is representative of the time pattern of the benefit from the leased asset, even if the receipt of payments is not on that basis, or where the payments are structured to increase in line with expected general inflation. 1.5 Impairment of assets The Trust assesses at each reporting date whether there is any indication that an asset may be impaired. If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined. If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in profit or loss. 1.6 Employee benefits Short-term employee benefits The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted. 1.7 Provisions and contingencies Provisions are recognised when: the Trust has an obligation at the reporting date as a result of a past event; it is probable that the Trust will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably. Contingent assets and contingent liabilities are not recognised. 13
Accounting Policies 1.8 evenue When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the Trust; the stage of completion of the transaction at the end of the reporting period can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. evenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax. Interest is recognised, in surplus or deficit, using the effective interest rate method. 1.9 Borrowing costs Borrowing costs are recognised as an expense in the period in which they are incurred. 14
Notes to the Annual Financial Statements 2016 2015 2. Property, plant and equipment Cost / Valuation Accumulated depreciation and impairments 2016 2015 Carrying value Cost / Valuation Accumulated depreciation and impairments Carrying value Land 1 331 536-1 331 536 1 331 536-1 331 536 Buildings 4 882 464 (2 355 475) 2 526 989 4 882 464 (2 200 113) 2 682 351 Furniture and fixtures 344 891 (293 108) 51 783 344 891 (263 210) 81 681 Motor vehicles 374 164 (12 472) 361 692 151 285 (151 285) - Office equipment 97 816 (97 816) - 102 050 (102 613) (563) IT equipment 170 293 (138 898) 31 395 270 600 (245 886) 24 714 Computer software 538 527 (538 527) - 538 527 (538 527) - Total 7 739 691 (3 436 296) 4 303 395 7 621 353 (3 501 634) 4 119 719 econciliation of property, plant and equipment - 2016 Opening balance Additions Disposals Depreciation Total Land 1 331 536 - - - 1 331 536 Buildings 2 682 351 - - (155 362) 2 526 989 Furniture and fixtures 81 681 - - (29 898) 51 783 Motor vehicles - 374 164 - (12 472) 361 692 Office equipment (563) - 563 - - IT equipment 24 714 26 061 - (19 380) 31 395 4 119 719 400 225 563 (217 112) 4 303 395 econciliation of property, plant and equipment - 2015 Opening balance Additions Depreciation Total Land 1 331 536 - - 1 331 536 Buildings 3 015 235 - (332 884) 2 682 351 Furniture and fixtures 110 958 5 006 (34 283) 81 681 Office equipment 321 - (884) (563) IT equipment 45 716 11 253 (32 255) 24 714 4 503 766 16 259 (400 306) 4 119 719 Details of properties Unit 1, Sherborne Square, Parktown - Purchase price: 30 June 2008 6 214 000 6 214 000 15
Notes to the Annual Financial Statements 2016 2015 3. Funds available for distribution Gencor settlement fund (281 616 587) (293 045 697) Gefco settlement fund (5 342 950) (2 479 104) Msauli settlement fund (1 015 861) (953 331) (287 975 398) (296 478 132) Gencor settlement fund Opening balance 293 045 697 301 657 299 Net surplus/(deficit) for the period 4 678 776 9 170 009 Claims paid (20 828 968) (12 558 886) Transfer to claims payable (6 479 482) (11 200 565) eversal of prior year claims payable 11 200 565 6 506 338 Prior year correction of allocation - (528 498) 281 616 588 293 045 697 Gefco settlement fund Opening balance 2 479 104 3 005 680 Net surplus/(deficit) for the period 124 817 244 631 Claims Paid (530 762) (681 143) Transfer to claims payable (817 240) (1 087 031) eversal of prior year claims payable 1 087 031 418 147 Contribution by founder 3 000 000 - Prior year correction of allocation - 578 820 5 342 950 2 479 104 Msauli settlement fund Opening Balance 953 331 952 951 Net surplus/(deficit) for the period 62 530 122 553 Claims paid - (106 426) Transfer to claims payable (90 913) (90 913) eversal of prior year claims payable 90 913 125 488 Prior year correction of allocation - (50 322) 1 015 861 953 331 16
Notes to the Annual Financial Statements 2016 2015 4. Other financial assets At fair value Investment portfolio - Taquanta Asset Managers 142 055 024 149 251 896 Investment portfolio - Prescient Investment Management 135 770 744 142 220 952 277 825 768 291 472 848 Non-current assets At fair value 277 825 768 291 472 848 The fair values of listed or quoted investments are based on the quoted market price at reporting period date. Taquanta Asset Managers 2016 Book Value 2015 Book Value 2016 Market Value 2015 Market Value Domestic equity investments 17 453 080 21 202 954 19 388 640 23 030 906 Fixed interest investments 16 103 440 26 377 222 16 261 131 26 769 730 Cash investments 107 623 592 100 857 725 106 405 252 99 451 260 Accrued income 825 444 911 371 - - 142 005 556 149 349 272 142 055 023 149 251 896 Prescient Investment Management 2016 Book Value 2015 Book Value 2016 Market Value 2015 Market Value Domestic equity investments 1 262 125 30 976 093 2 415 816 59 433 124 Fixed interest investments 91 171 452 79 112 462 91 897 924 80 312 248 Cash investments 41 423 762 2 465 836 41 457 004 2 475 580 Accrued income 24 896 9 745 - - 133 882 235 112 564 136 135 770 744 142 220 952 5. Trade and other receivables Trade receivables 5 951 11 345 Deposits 48 450 45 950 VAT 40 099 40 539 Accrued Interest 68 854 47 377 163 354 145 211 6. Cash and cash equivalents Cash and cash equivalents consist of: Cash on hand 2 500 2 382 Bank balances 414 926 302 091 Other cash and cash equivalents 13 301 903 13 242 578 13 719 329 13 547 051 7. Trust capital Capital account / Trust capital Balance at beginning of year 300 300 17
Notes to the Annual Financial Statements 2016 2015 8. Provisions econciliation of provisions - 2016 Opening balance eversed during Total the year Provisions for employee benefits 101 095 (10 569) 90 526 econciliation of provisions - 2015 Opening balance eversed during Total the year Provisions for employee benefits 129 019 (27 924) 101 095 9. Trade and other payables Trade payables 27 848 70 496 Claims payable 7 387 636 12 378 509 Trustee's fees payable 370 152 217 752 Deposits received 46 665 38 545 Other payables 113 321-7 945 622 12 705 302 10. evenue ental Income 418 600 325 899 11. Other income Fair value adjustment (5 308 959) 282 516 Administration fee income 388 800 360 000 Other income - 63 232 (4 920 159) 705 748 12. Operating deficit Operating deficit for the year is stated after accounting for the following: Property, plant and equipment 50 000 - Other financial assets (5 358 959) 282 516 Depreciation on property, plant and equipment 216 549 400 304 Employee costs 2 150 656 2 066 929 18
Notes to the Annual Financial Statements 2016 2015 13. Investment revenue Dividend revenue Investment portfolio - Taquanta Asset Managers 722 337 724 094 Investment portfolio - Prescient Investment Management 2 497 822 1 454 576 3 220 159 2 178 670 Interest revenue Investment portfolio - Taquanta Asset Managers 9 251 110 8 499 606 Investment portfolio - Prescient Investment Management 5 282 519 6 025 423 Investment portfolio - Investec Asset Management - 378 207 Interest earned - Corporate Saver Account 676 298 519 621 Portfolio Expenses (1 426 344) (1 481 651) S24J Interest - Taquanta Asset Managers 134 434 127 237 13 918 017 14 068 443 17 138 176 16 247 113 14. Social Project Expenses Project expenses/(refunds) Asbestos Interest Group (AIG) 129 600 120 000 Asbestos esearch (D FIG) - 7 500 Cancer Charity Workers (CCW) 33 950 30 000 Kuruman Palliative Care Nurse Project (KPCNP) 265 897 242 735 Mesothelioma Incidence Near Kuruman Study (MINKS) 28 000 131 100 Neil White Bursary (NWB) 25 000 25 000 SA Meso Interest Group (SAMIG) - 100 000 482 447 656 335 15. Taxation No provision has been made for 2016 tax as the Trust has no taxable income. In terms of section s25b of the Income Tax Act, the income in excess of expenditure for the year will be taxed in the hands of the beneficiaries. 16. Auditors' remuneration Fees 142 500 142 500 17. Cash used in operations Surplus before taxation 4 866 123 9 537 192 Adjustments for: Depreciation and amortisation 216 549 400 304 Proft/Loss on Investments 5 308 959 (282 516) Dividends received - investment (3 220 159) (2 178 670) Interest received - investment (13 918 017) (14 068 443) Movements in provisions (10 569) (27 924) Changes in working capital: Trade and other receivables (18 143) 97 592 Trade and other payables (4 759 680) 5 481 093 (11 534 937) (1 041 372) 19
Notes to the Annual Financial Statements 2016 2015 18. Fair value adjustment ealised (profit)/loss on investment portfolio Investment portfolio - Taquanta Asset Managers 2 085 647 626 088 Investment portfolio - Prescient Investment Management (24 348 151) 814 834 (22 262 504) 1 440 922 Unrealised (profit)/loss and reversals on investments portfolio Investment portfolio - Taquanta Asset Managers (146 843) 4 056 322 Investment portfolio - Prescient Investment Management 27 768 307 (5 779 760) 27 621 464 (1 723 438) ealised (profit)/loss and reversals on investment portfolio (22 262 504) 1 440 922 Unrealised (profit)/loss and reversals on investments portfolio 27 621 464 (1 723 438) 5 358 960 (282 516) 20
Detailed Income Statement 2016 2015 Note(s) evenue ental Income 418 600 325 899 Other income Administration fee income 388 800 360 000 Other income - 63 232 Dividends received 13 3 220 159 2 178 670 Interest received 13 13 918 017 14 068 443 ealised and Unrealised profit and loss on investments (5 308 959) 282 516 12 218 017 16 952 861 Operating expenses Administration and management fees (medical) (1 812 300) (1 645 436) Auditors remuneration 16 (142 500) (142 500) Bank charges (1 549) (6 199) Claim processing and related expenses (312 953) (135 352) Communication fees (79 262) (177 369) Computer expenses (289 424) (259 634) Courier and postage fees (37 124) (25 973) Depreciation, amortisation and impairments (216 549) (400 304) Employee costs (2 150 656) (2 066 929) Equipment rental and related expenses (41 319) (37 803) Health and safety (12 365) - Legal expenses 86 046 (183 346) Insurance (49 435) (48 933) Medical evaluation expenses (198 990) (120 917) Meeting expenses (49 443) (52 760) Printing and stationery (8 846) (16 738) Professional fees - Actuarial fees (93 480) (39 900) Professional fees - Administration fees (21 809) (24 998) Professional fees - Labour relations (1 567) (1 511) Professional fees - Other (97 806) (103 392) ental and related expenses (326 668) (287 533) epairs and maintenance (49 334) (19 182) Subscriptions (3 156) (1 593) Sundry expenses (4 522) (1 160) Telephone and fax (62 504) (72 153) Travel and accomodation (147 982) (159 418) Trustee consulting fees (57 350) (27 000) Trustee fees (1 105 200) (1 027 200) (7 288 047) (7 085 233) Operating surplus 12 5 348 570 10 193 527 Social project expenses (482 447) (656 335) Surplus for the year 4 866 123 9 537 192 21 The supplementary information presented does not form part of the annual financial statements and is unaudited